More on Max Kargman (1908-2005)
More on Max Kargman (1908-2005)
In response to my brief remembrance of Max Kargman, old friend and long-time affordable housing and urban revitalization advocate (link in .pdf), developer, and manager Bob Kuehn (link in .pdf)
writes:
I was sad to read Max Kargman’s obituary in the Globe last Sunday. I too am an MRK alumnus, having worked for him from 1969 to 1970.
I had created this crude computer program for my Urban Studies degree that calculated HUD feasibility and syndication returns. Of course, Max was the only one to see its value, and I began my post-graduate education under his tutelage.
And I learned a lot real fast — he called in his brain trust, Walter Winchester, Eddie Saxe, and Nick Iacuzio, and informed them: “This guy may be on to something — tell him everything he needs to know to make his little black box work”. I ultimately returned the favor by refining his current deals to the tune of several million dollars.
Two other anecdotes stick in my mind:
· When I was first introduced to Max, he asked that I make him a proposal regarding compensation. I screwed up my courage and suggested that $18,000 per year would be appropriate. Max deadpanned that that amount was not nearly enough — I should pay him two or three times that much for the education I was about to receive. I was crestfallen, but then he beamed that famous Max smile and shook my hand to seal the bargain. He was also quite right that I would still have been ahead of the game if I had paid him.
· A year or so later when we were about to part company, he coached me on how to set up my own company to market the computer models that by now were far more effective tools. I went through an elaborate calculation of what it would cost for computer time, to buy a printer and paper, as well as amortize my R&D. He took one look at my machinations and said: “No, no, no, you got it all wrong. Call up a couple of accountants and ask them what it costs them to type up the syndication schedules once they have done all the calculations”. When I reported back to Max he said: “So that’s your fee — $300 to print out the schedules and you will throw in the calculations for free”. With this shrewd advice, Housing Economics was launched.
We will all miss Max, a true pioneer of affordable housing and an important mentor to the many that follow in the path that he blazed.
